Embed Size (px)
DESCRIPTION
Jeopardy – Review. ANSWER. This is the % cost of credit on a yearly basis. This is your key to comparing credit costs. QUESTION. What is an APR ? $100. ANSWER. A plastic card used to immediately transfer funds for a purchase from a bank account to a seller. QUESTION. - PowerPoint PPT Presentation
Citation preview
Jeopardy – Review
Column 1 Column 2 Column 3 Column 4 Column 5
$100 $100 $100 $100 $100
$200 $200 $200 $200 $200
$300 $300 $300 $300 $300
$400 $400 $400 $400 $400
$500 $500 $500 $500 $500
ANSWER
This is the % cost of credit on a yearly basis.
This is your key to comparing credit costs.
QUESTION
What is an APR?
$100
ANSWER
A plastic card used to immediately transfer funds for a purchase from a bank account to a seller.
QUESTION
What is a debit card ?
$200
ANSWER
the total dollar amount you pay for using credit.
Includes interest, service charges, and fees.
QUESTION
What is a Finance Charge?
$300
ANSWER
What are four things we should list when writing a check?
QUESTION
What are four things we should list when writing a check?
• Date• Payee• Numerical amount• Written amount• Purpose or account number• Signature
$400
ANSWER
The difference between Credit and Debit cards?
QUESTION
A Debit Card electronically subtracts money instantly from your savings/checking account to pay for a good/service at time of purchase.
A Credit Card extends credit and delays payment?
$500
ANSWER
This is what they call a check with insufficient funds in your bank account to cover the bill payment.
QUESTION
What is a Bounced Check?
$100
ANSWER
Electronic computer terminals which offer automated, computerized banking.
QUESTION
What is an automated teller machine (ATM)?
$200
ANSWER
The receipt of money, goods, or services in exchange for a promise to pay at a later date.
The most important thing to remember is that
you have to pay it back and at an interest rate finance fee.
QUESTION
What is Credit?
$300
ANSWER
True or False- If you do not pay your credit card bill in full-each month, you will be charged interest on the amount that has not been paid
is a periodic charge in exchange for the use of credit.
QUESTION
What is True?
$400
ANSWER
If you do not pay your credit card bill in full-each month, you will be charged this on the amount that has not been paid.
QUESTION
What is Interest?
$500
ANSWER
The purpose of a Check Register?
QUESTION
• to keep track of deposits• to keep track of check withdrawals • to maintain the current balance
$100
ANSWER
Three dangers of using credit?
QUESTIONWhat are:• Extremely high interest rates. The worse your credit rating the
higher the interest. (Especially for teenagers) Risk Easy to spend over your affordable budget. “Ask yourself can I afford this” Credit companies target less experienced teenage consumers 0% line balance transfers w/ a variable interest rate after the grace period expires Avoid the Minimum Payment Trap Don’t let anyone else use your credit card Don’t keep spending for the free promotional gift
$200
ANSWER
Who tracks your Credit History?
QUESTION
Credit Bureaus- provides information to businesses regarding the credit history of its customers. Maintains records and assigns each person a credit rating. Be careful a high number of credit inquires can affect your rating.
$300
ANSWER
Three causes of bad credit preventing a bank to loan money to you?
QUESTION
Causes of bad credit preventing a bank to loan money to you: Overextended in bills History of not paying bills or late fees Unemployed No credit history (too clean of credit) Bounced Check- write check with insufficient funds in your bank account to cover the bill payment. Defaulted on loan Bankruptcy Error on Credit Report
$400
ANSWER
Open up a savings or checking account Apply for 1 credit card, or store card (easier to qualify for) Always pay promptly (not just the minimum payment) Understand the credit terms: grace period, interest rate Be careful not to overuse the card and get yourself into financial trouble BE PATIENT! IT TAKES TIME TO ESTABLISH GOOD CREDIT.
QUESTION
How do you establish Credit?
$500
ANSWER
the classification a credit agency assigns a person regarding whether or not the person is a good financial risk.
QUESTION
What is a Credit Rating?
$100
ANSWER
the past performance or record of how individuals or businesses pay their creditors. (Pay on time, & in full)
QUESTION
What is a Credit History?
$200
ANSWER
is the maximum balance that the credit card company will allow you to have on your card.
QUESTION
What is a Credit line?
$300
ANSWER
If you fail to repay a loan
QUESTION
What is Default?
$400
ANSWER
A personal identification number that is required to perform transactions.
QUESTION
What is a PIN number?
$500
ANSWER
Paychecks and benefits checks are directly deposited into a specific depository institution account.
QUESTION
What is a Direct Deposit?
$100
ANSWER
Borrow only what you can repay
Pay Debts Promptly
Report Stolen/lost cards
Read and understand the credit contract
QUESTION
What are your responsibilities as a borrower?
$200
ANSWER
One of the 3C’s that addresses –
What if you don’t repay loan?
QUESTION
What is Capital?
$300
ANSWER
One of the 3C’s that addresses –
Will you repay the debt?
QUESTION
What is Character?
$400
ANSWER
One of the 3C’s that addresses –
What if you don’t repay loan?
QUESTION
What is capital?
$500
FINAL JEOPARDY ANSWER
Name and describe the
3 C’s of credit?
FINAL JEOPARDY QUESTION
What are• Character – will you repay the debt? –
possess the reliability to pay the debt
• Capital – What if you don’t repay the debt? – Do you have valuable assets that could be used to pay the debt if you default – what property do you own?
• Capacity – Can you repay the debt? – Do you work regularly? Provide enough income to support your credit use?
